Overview of Idaho Mortgages
Idaho is known as the "Gem State" because of the gemstones that can be found there, but its natural beauty is also gemlike. Idaho mortgage rates hover around the national average. Idaho is larger than all of New England, but it is also one of the least populous states in the country. All but four of Idaho counties have conforming loan limits of $417,000.
|30 year fixed||4.79%||4.76%||+0.02|
|15 year fixed||4.34%||4.28%||+0.06|
|30 yr fixed mtg refi||4.73%||4.71%||+0.03|
|15 yr fixed mtg refi||4.26%||4.21%||+0.05|
|7/1 ARM refi||4.51%||4.47%||+0.04|
|15 yr jumbo fixed mtg refi||4.38%||4.46%||-0.08|
National Mortgage Rates
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Idaho Mortgage Rates Quick Facts
Historical Mortgage Rates in Idaho
Idaho mortgage rates are roughly equal to the national average, though they have been higher than that in recent years. So far, 2016 Idaho mortgage rates are slightly higher than the national average.
Idaho Historic Mortgage Rates
|Year||Idaho Rate||U.S. Rate|
Idaho Mortgages Overview
Idaho real estate is a bit less expensive than the rest of the country on average. The national average home value according to Zillow is $186,100, while Idaho’s average comes in at $174,100.
Idaho Mortgage Rates
|Percentage of Homes||88.40%|
|Average Property Value||$126,393.38|
|Percentage of Homes||3.20%|
|Average Property Value||$187,226.56|
|Percentage of Homes||5.90%|
|Average Property Value||$138,706.03|
|Percentage of Homes||2.40%|
|Average Property Value||$104,895.14|
The conforming loan limit in Idaho is at the standard $417,000, except for a handful of counties that hit $625,500. Those counties are Blaine, Camas, Lincoln and Teton. This is a reflection of the higher average real estate prices in those counties. FHA limits in Idaho stick to the average $271,050, with exception of the same four counties with increased conforming loan limits. Those counties’ FHA limits are also at $625,500.
Conforming and FHA Loan Limits by County
|County||Conforming Limit||FHA Limit|
Idaho is a “deed of trust” state, meaning when you take out a home loan in the Gem State you’ll probably get a deed of trust instead of an actual mortgage. Lenders who issue mortgages have to go to court to foreclose on the home that the mortgage applies to. But if a trust deed is offered instead, a lender can initiate a “power of sale” foreclosure by hiring a third party to auction the home it wants to sell, bypassing the court process.
Idaho has some lax disclosure laws for sellers, so it’s important that buyers be vigilant when considering a property purchase. The best course of action is to arrange a property inspection with a well-trusted inspector or company. This is particularly critical when disclosure laws are not as strict as they are in other states, as is the case with Idaho.
30-Year Fixed Mortgage Rates in Idaho
Fixed-rate mortgages are the tried-and-true home loan option for buyers. For people who plan to stay in their new home for a considerable period of time, a fixed-rate mortgage may be especially attractive. The most common type of home loan is a 30-year fixed-rate mortgage. With this mortgage you have three decades to pay off the loan and the interest remains the same for the duration of that period, unless you refinance. Another option for Idaho buyers is a 15-year fixed rate mortgage. This loan comes with a lower interest rate but the monthly payments are higher. The average Idaho mortgage rate for fixed-rate 30-year mortgages is 4.79%.
Idaho Jumbo Loan Rates
Idaho homes are less expensive than the average U.S. home, so it makes sense that the conforming loan limit is average in almost the entire state. A few counties have increased their limit to $625,500. In each county, a “jumbo loan” is a loan that exceeds the conforming loan limit. If you need to take out a jumbo loan to pay for your dream home in Idaho, be aware that these oversize loans are accompanied by higher interest rates. Banks are taking on a bigger risk by issuing these larger loans and so the higher interest is meant to offset that risk. The average jumbo loan rate in Idaho is 4.55%.
Idaho ARM Loan Rates
An adjustable-rate mortgage (or ARM) stands in contrast to a fixed-rate mortgage. Unlike a fixed-rate mortgage, an ARM’s interest rate can “adjust” or change over the period of the loan. Typically an ARM will offer a lower introductory interest rate as compared to a fixed-rate mortgage. That initial period lasts somewhere between one and 10 years. At the end of that period, the interest rate will usually rise.
The terms of the loan will spell out how many times the rate can rise and the highest possible level that it can reach. It is of utmost importance to ensure that you can afford the maximum possible interest rate before you decide that an ARM is the best option for you.
The average rate for an ARM in Idaho is 5.06%.
Idaho Mortgage Resources
Looking for mortgage assistance in the Gem State? There are a variety of loan, down payment and education programs in place to help homebuyers along in their process.
The Idaho Housing and Finance Association is a sort of one-stop-shop for home financing needs. If you make up to $90,000, you may qualify for one of their loan products, which include low mortgage rates, homeowner classes, down payment and closing cost assistance, and tax credits worth up to $2,000 per year.
Idaho First Time Homebuyer is a resource that helps to pair homebuyers with home loan and down payment assistance that will work best for them. As a first time homebuyer, there are a host of loans and grants you may qualify for.
|Resource||Problem or Issue||Who Qualifies||Website|
|Idaho Housing and Finance Association||Offers loan products, which include low mortgage rates, homeowner education, down payment and closing cost assistance and 35% tax credits worth up to $2,000 per year.||Certain homebuyers making less than $90,000 may qualify.||https://www.idahohousing.com/|
|Idaho First Time Homebuyer||Pairs homebuyers with home loan and down payment assistance that will work best for them.||First-time homebuyers.||http://www.idahofirsttimehomebuyer.com/about/|
|USDA Rural Development - Single family loans||Offers payment assistance to increase an applicant’s repayment ability.||Applicants must be without decent, safe and sanitary housing; Be unable to obtain a loan from other resources on terms and conditions that can reasonably be expected to meet; Agree to occupy the property as your primary residence; Have the legal capacity to incur a loan obligation; Meet citizenship or eligible noncitizen requirements; and Not be suspended or debarred from participation in federal programs.||http://www.rd.usda.gov/programs-services/all-programs/single-family-housing-programs|
|Home Affordable Refinance Program||Refinancing.||Single family homes and condos that fit within lending loan limits.||http://www.harp.gov/|
The United States Department of Agriculture Rural Development set up loan and grant programs to help grow rural Idaho communities while offering safe, affordable housing for residents. Loans and grants are available for people looking to purchase a new home or repair their current home, who meet the program requirements.
Idaho Mortgage Taxes
Homeowners are allowed to deduct the mortgage interest they pay when they file their federal income taxes (up to $1,000,000.) Homeowners in Idaho can double their deductions by including mortgage interest on income taxes as well. The Idaho rules for state itemized deductions generally follow suit with federal rules.
In Idaho, there is also no tax charged on real estate property title transfers.
Idaho Mortgage Refinance
If you’re refinancing your Idaho mortgage, there are some options to get you started. First, you don’t have to work with the lender who issued your original mortgage (though you can certainly do this). Feel free to shop around and compare rates from other lenders to figure out what works best for your particular situation.
The Home Affordable Refinance Program of Idaho is a resource that may be available to you. It helps qualifying applicants gain access to interest and principal payment reductions and low closing costs. Single family homes and condos are accepted. HARP works with a number of different lenders throughout the state.
The Idaho Housing and Financing Association also works with homeowners on refinancing their loans.
Best Places To Get A Mortgage
SmartAsset’s interactive mortgage map highlights the best counties in the country (and in each state) for securing a mortgage. Hover over counties and states to see data points for each region, or use the map’s tabs to view the top counties for each of the factors driving our analysis.
Methodology For many people buying a house means securing a mortgage. To determine the best places in the country to get a mortgage we looked at four factors: overall borrowing costs, ease of securing a mortgage, cheap property taxes and cheap annual mortgage payments.
To calculate the overall borrowing costs, we looked at the expected costs over the first five years of a $200,000 mortgage with a 20% down payment, including closing costs. We calculated the ease of getting a mortgage as the ratio of mortgage applications to actual mortgage originations (secured mortgages) in each county. We based annual mortgage payments on the annual principal and interest payments for a $200,000 loan in that location, using average mortgage rates in each county.
Finally, we ranked locations based on these four factors, and then averaged those rankings, giving equal weight to each factor. The areas with the lowest average rankings are the best places to get a mortgage.
Sources: Mortgage Bankers Association, US Census Bureau 2016 5-Year American Community Survey, Informa, Bankrate, government websites, SmartAsset